The market is down 92. The SFE Futures were down 63 this morning.

The Dow Jones closed down 253 on Friday. Dow down 282 at worst. The payrolls number disappointed the market with no additional jobs created in August. The unemployment rate held steady at 9.1%. Financial sector was the worst, down 4.1% after falling 2.4% on Thursday. The FHFA filed a lawsuit against 17 banks as they try to recoup $196bn in losses from mortgage backed securities bought by Fannie Mae and Freddie Mac. Bank of America fell 8.3% with some questioning why they have to pay Buffett a 10% yield to borrow $5bn.

ECB President Trichet urged Italy to approve its austerity plan when the country’s senate begins its debate tomorrow. The oil price lost $2.48 to $86.45 and the Gold price was up $47.80 to $1876.90. The Aussie dollar fell from 107.29¢ to 105.94¢. US Markets are closed tonight for the Labor Day Holiday. Greek 2 year bonds yield 47% (wide spreads … no market basically). Main events this week — a German Court decision on Thursday, Obama’s address to Congress on jobs on Thursday and an RBA Meeting here tomorrow.

Today’s news …

  • Lend Lease (LLC) has been awarded a $115m contract by the Queensland Department of Transport.  LLC down 4.5% to 794¢.
  • News Corp (NWS) deputy COO, James Murdoch, said he will forgo a $US6m bonus because “it was the right thing to do” in light of the phone-hacking scandal. Two board members also announced their resignations. NWS down 2.5% to 1552¢.
  • QR National (QRN) has signed $900m rail project deal with a consortium of coal miners to build the Gladstone LNG project in Queensland. Construction will begin in early 2012 and has a planned completion date of March 2015. QRN up 1¢ to 327¢.
  • Peabody Energy and ArcelorMittal have extended the offer period on their $16 takeover bid for Macarthur Coal (MCC) until September 27. MCC up 5¢ to 1600¢.
  • SAB Miller has referred statements made by Fosters Group (FGL) in their results presentation to the Takeovers panel. They argue FGL are misleading investors about future profitability. SAB Miller is trying to avoid having to pay a higher price and it also suggests they are also reasonably confident that there is not going to be a counterbid. FGL down 1.5¢ to 485.5¢.
  • The total number of job advertisements in Australian newspapers and on the internet fell 0.6% in August – the 2nd consecutive monthly fall, according to an ANZ jobs ads index.  Total jobs ads were 6.1% above their level a year earlier.
  • The TD Securities-Melbourne Institute inflation gauge fell 0.1% in August, after prices rose 0.3% in July. The fall in consumer prices was largely due to a fall in the price of fruit and vegetables.
  • Business inventories rose 2.5% in the June quarter after rising 0.7% in the March quarter. Economists had expected a 0.4% rise.

With the GERMAN COURT DECISION able to de-rail the European bailout on Thursday the market is going to remain on tenterhooks although the chances of a decision going against the bailout legality appears to be over-emphasised by the bears and doesn’t appear to be worrying most economists. The German High Court is considering on 7th September whether Germany’s commitment to the EFSF goes against EU law, or against the German constitution. The issue relates to the Maastricht Treaty which states member states cannot assume the debts of other states, additionally whether the German Chancellor’s decision to fund the bailout facility was required to be first presented to the German Parliament.

No change … we’re still cautious on the market and not looking to buy anything just yet. Read more at Marcus Today.

For a 5 day FREE TRIAL of the MARCUS TODAY newsletter Click Here. You will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including:

  • Overnight developments, news, comments, rumours, broker recommendations and ideas from Marcus and his Team.
  • Our Portfolio recommendations which is actively managed on behalf of subscribers … no “set & forget”. Everything you need to effortlessly managed your own long term investment portfolio.
  • Daily Technical Trading ideas and data, including daily scans of the ASX 300 for stocks changing trend.
  • Stock Database — all the numbers with comments on the top 300 stocks and more.
  • Educational section — Marcus’s Educational and Entertaining articles.

For a free 5 day obligation FREE TRIAL of the MARCUS TODAY newsletter Click Here. You will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including:

  • Overnight developments, news, comments, rumours, broker recommendations and ideas from Marcus and his Team.
  • Our Recommended Portfolio which is actively managed on behalf of subscribers …no “set & forget”. Everything you need to effortlessly managed your own long term investment portfolio. It includes Income Portfolio recommendations.
  • Daily Technical Trading ideas and data, including daily scans of the ASX 300 for stocks changing trend.
  • Stock Database – all the numbers with comments on the top 300 stocks and more.
  • Educational section – Marcus’s Educational and Entertaining articles.

We also offer a FREE END OF DAY EMAIL — Click here — A free summary of the day in the market.

Subscribe to MARCUS TODAY — Click Here. We are sure you will enjoy and profit from what we offer…we have one of the highest re-subscription rates in the financial newsletter industry.

Peter Fray

Get your first 12 weeks of Crikey for $12.

Without subscribers, Crikey can’t do what it does. Fortunately, our support base is growing.

Every day, Crikey aims to bring new and challenging insights into politics, business, national affairs, media and society. We lift up the rocks that other news media largely ignore. Without your support, more of those rocks – and the secrets beneath them — will remain lodged in the dirt.

Join today and get your first 12 weeks of Crikey for just $12.

 

Peter Fray
Editor-in-chief of Crikey

JOIN NOW